Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1887-04-22
RAILROAD MATTERS,
Who Owns the Lebanon SpringsiRoad-A
Complicated A fair

The complications concerning the sale
and ownership of the Lebanon Springs
railroad still continue John w Van
Valkenburg, who succeeded w. V. Rev
nolds as receiver, claims that he has never
been discharged from his trust nv tba
court, and that the title of the road is not
in the New York. Rutland and Montreal
company. This latter proposition. If is
oeileVeu' Will not be seriously contradict
ed. Mr.. Van Valkenburp saws "Tba
New YORK, Rutland and Montreal com
pany does not own foot of the road. They
have not got deed of foot of the land
nor single track laid. Their plan was to
build road from the State line to the 7. O.
banon Springs road, but they haven t done
So The affair is pretty well mixed nm and
Is in state of chaos to the general public
but to me it is as clear as can be. The
sale of the Lebanon Springs road was not
valid. The ale should have been bv the
attorney general. 1t was sold by Referee
Mcclellan for the bondhoders, and was
purchased by Delos McCurdy for Sl55 900
tor Foster &c Hazard, syndicate. subject
to $3.50, 600 receivers certificates The
DondholderS consented to this specihca-
ton because these certificates issued bv
me to build up and equip the road were at
me sanction OF the bondholders. When
l.
ton that the original Lebanon Springs
bonds should be taken off But the
receivers certificates were approved
before the bonds and so took pre-
cedence. When | took hold of the
road it was being run by the bondholders
When Foster & Hazard got the deeds Of
the Lebanon Springs road they formed
the New York, Rutland and Montreal
railroad, and going to John c. Short. sold
the New York, Rutland and Montreal Gn-
GUIDING the Lebanon Springs to him The
$4,000 was paid, and something in addi-
tlon, and there is still remaining 800, 600
and as security Foster e Hazard hold the
deed OF the Lebanon Springs When
Short got control of the road he issued
SSOO,OoO first mortgage bonds, and these
nave oeeu sold by the American Finance
company. This company has paid divi-
dent, but the Lebanon Springs road has
been allowed to decline. The employees
nave not been paid their wages, and iudg-
ments are piling up. For ali these $500
900 bonds there is not foot of property to
show"
r. H. Mcclellan of Troy, whose nephew
was the referee who sold the Lebanon
Springs railroad for the boudholders, saws
that the referee sold the road under the
foreclosure of valid mortgage for the
bond holders. Proceedings are now pend
ing in the Supreme Court to have the sale
set aside on the ground of irregularty.
The Lebanon Springs road has recently
passed under the control of the Housaton-
ic company, which, with terminus at
State line, by building road to Lebanon
Springs, distance of seven miles would
be enabled to control through line from
New York to Montreal. If the action
should prove favorable to the referees
sale, the bond holders of the Lebanon
Springs road, the holders of the receivers
certificates and the subsequent bond hold
ers of the New York, Rutland and Mon
treal road will have to adjust their claims
in the courts.